In the central Valley of California including San Joaquin and Stanislaus and Merced counties I have found an interesting trend amoung the expired and withdrawn listings I am calling. What is it, you ask? Probably one third of those I spoke with have decided to rent their underwater properties.
That concerns me for a couple of reason:
1. They owe more than the property is worth....for how long? 10-15 years?! A little scarry..a lot scarry!!
2. The rent may or may not make all of the payment now. What about vacancy?
3.And here's the most important:
a. the HOMEOWNER RECOVERY ACT which protects sellers freom a tax problem under certain circumstances on the personal residence runs out Oct of 2012. While sellers may still be considered owner occupants by the IRS after a year of being out of the home...what happens if the seller is forced to short sale AFTER Oct 2012...no protection.
b. Also, SB581 in California cureently says no deficiency on any loan doing a short sale right now. What if that law and the protection under it changes during the next few years?
I am not trying to be a doomssayer, but I do want to be sure people understand what ramifications could be if they wait too long to take care of their situations.
Please do not assume anything right now. Find out what your real options are and what your real issues could be. I will be happy to give a free consult to anyone so we can look at it all together. The financial health of your family and your future could be at stake. Do the right thing. Do your homework.
Be well.
Showing posts with label Mortgage Deliquency Options. Show all posts
Showing posts with label Mortgage Deliquency Options. Show all posts
Tuesday, November 1, 2011
Wednesday, May 18, 2011
6.38 Million late on their mortgage in April
Tuesday, May 17th, 2011, 5:42 taken from http://www.housingwire.com/2011/05/17/missed-payments-on-mortgages-jump-to-6-4-million-in-april
Mortgages 30 or more days delinquent or in foreclosure totaled 6.38 million in April, a 2.3% increase from the previous month, according to Lender Processing Services (LPS: 28.59 +0.42%).
The LPS "first look" monthly mortgage performance report showed a sudden increase in troubled loans in April after an 11% monthly drop in March. However, delinquencies are still 16.3% below levels seen one year ago. Overall, 7.97% of all loans in the LPS database are 30 or more days delinquent.
Of the 6.38 million properties in 30-day delinquency or worse, 4.2 million are not in foreclosure. There are also 1.9 million loans 90 days or more delinquent but not in foreclosure.
These mortgages are the exact ones making up the shadow inventory of foreclosures that are keeping downward pressure on home prices and stalling out a recovery. According to another data provider, CoreLogic (CLGX: 18.34 +0.22%), the shadow inventory has declined slightly over the past year.
CoreLogic defines the shadow inventory as mortgages in at least 90-day delinquency and currently transitioning from foreclosure to REO. This supply of properties currently not on MLS systems but winding through the foreclosure process fell to 1.8 million in January 2011, down from 2 million the year before.
But this inventory will continue to see incoming loans for some time.
"In addition to the current shadow supply, there are nearly 2 million nondelinquent or current negative equity loans that are more than 50% upside down that will likely become shadow supply in the near future," CoreLogic said. end article
My assessment:
You know, in America we don't have debtors prison as in the old days of Merrie Olde England, however, there are 6.3 million people being incarcerated in their homes per this article. Are you one of them? Do you know what your options may be?
According to NAR, out of the millions of foreclosures since 2005, over 50% were never listed for sale with a Realtor. People walked away not knowing their options or the consequences of their actions, which in many cases were dire. There is no reason to make uneducated decisions because of fear or embarrassment. Decisions that may have long term negative effects on your family, your credit and security and peace of mind. Information is at your fingertips. Numerous sources are waiting to help you. I am one of those. Let's talk. I can help!
Mortgages 30 or more days delinquent or in foreclosure totaled 6.38 million in April, a 2.3% increase from the previous month, according to Lender Processing Services (LPS: 28.59 +0.42%).
The LPS "first look" monthly mortgage performance report showed a sudden increase in troubled loans in April after an 11% monthly drop in March. However, delinquencies are still 16.3% below levels seen one year ago. Overall, 7.97% of all loans in the LPS database are 30 or more days delinquent.
Of the 6.38 million properties in 30-day delinquency or worse, 4.2 million are not in foreclosure. There are also 1.9 million loans 90 days or more delinquent but not in foreclosure.
These mortgages are the exact ones making up the shadow inventory of foreclosures that are keeping downward pressure on home prices and stalling out a recovery. According to another data provider, CoreLogic (CLGX: 18.34 +0.22%), the shadow inventory has declined slightly over the past year.
CoreLogic defines the shadow inventory as mortgages in at least 90-day delinquency and currently transitioning from foreclosure to REO. This supply of properties currently not on MLS systems but winding through the foreclosure process fell to 1.8 million in January 2011, down from 2 million the year before.
But this inventory will continue to see incoming loans for some time.
"In addition to the current shadow supply, there are nearly 2 million nondelinquent or current negative equity loans that are more than 50% upside down that will likely become shadow supply in the near future," CoreLogic said. end article
My assessment:
You know, in America we don't have debtors prison as in the old days of Merrie Olde England, however, there are 6.3 million people being incarcerated in their homes per this article. Are you one of them? Do you know what your options may be?
According to NAR, out of the millions of foreclosures since 2005, over 50% were never listed for sale with a Realtor. People walked away not knowing their options or the consequences of their actions, which in many cases were dire. There is no reason to make uneducated decisions because of fear or embarrassment. Decisions that may have long term negative effects on your family, your credit and security and peace of mind. Information is at your fingertips. Numerous sources are waiting to help you. I am one of those. Let's talk. I can help!
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